How does Organisational Culture Impact an Organisation’s Performance

Organizational Culture and Performance
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Organizational Culture and Performance
There are numerous definitions that have been coined to help enhance the understanding of the term organizational culture. The simplest way to grasp the idea of organizational culture is to think of an organization’s norms, shared values, beliefs, accepted behaviors, and the processes or ways of doing business. Every organization follows a set of beliefs and norms that greatly influence how employees perform or conduct themselves within the confines of the organization. Further, these greatly influence employees’ perceptions regarding their organization and, to a great extent, their commitment to their organization. Therefore, there is a need to develop an organizational culture that creates an environment that promotes the right attitude among employees. Also, the organizational culture should promote beliefs that induce as well as inculcate the values the management considers crucial for its organization’s success. The culture of an organization dictates performance. If the culture is well-constructed and helps promote the right attitude among the employees, the chances are high performance will reflect the same. However, failure by management to create and promote their desired culture leads to an organization that is founded on individualism, and therefore, failure becomes imminent. Provided herein is an explanation of how organizational culture through elements like leadership, motivation, shared values and norms, organizational environment, and employees’ skills and growth influence performance.
Leadership
Organizational culture greatly influences the leadership of an organization, and in turn, this influences the performance of an organization. The culture of an organization greatly influences the leadership organization. Like performance, culture dictates the type of leadership an organization adopts. The vision, values, and beliefs an organization adopts are within the culture of an organization. These are considered the key values of an organization that dictates how leaders behave, and with time a leadership style takes effect (Tsai, 2011). The employees of any organization take after the leadership. Therefore, whichever values, beliefs, and norms are adopted and practiced by the leadership will trickle down to the rest of the employees. As Tsai (2011) indicates, the behavior of the leadership and that of the employees should grow "increasingly inline" to help ensure that there is a unified behavior that the organization identifies within the eyes of the customers. The above effect is an environment marred by reduced conflicts and consistent behavior from the employees. Such a healthy environment is indeed prime for performance to grow since collaboration becomes easier when shared values persist.
The organizational culture of an organization also influences performance by introducing managerial practices that aim to leverage employees’ needs. Managerial practices are simply the elements used to gauge an organization’s management. Examples are job security, fair remuneration, and safety measures within the organization. According ...